HBA-EDN, SEP H.B. 1708 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1708
By: Keffer
Economic Development
3/20/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, cotton ginning employers (employers) are authorized to
elect which contribution rate they wish to pay for unemployment
compensation purposes and are required to notify the Texas Workforce
Commission (commission) of that election in writing not later than December
31 preceding the year for which the election is made.  Reason suggests that
employers would elect to pay the lowest rate, and so it may seem
inefficient to have employers notify the commission.  House Bill 1708
requires that employers pay a contribution at the lowest of the current
rates and removes the election notification requirement.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1708 amends the Labor Code to require an employer classified in
the Standard Industrial Classification Manual as Number 115111, cotton
ginning, to pay a contribution at the lowest of the following rates without
having to notify the Texas Workforce Commission: five and four-tenths
percent; the general tax rate applicable to that employer, with the deficit
tax rate and replenishment tax rate; or any other tax rate applicable to
that employer under the Texas Unemployment Compensation Act. 

EFFECTIVE DATE

September 1, 2001.